Prior to 13 October 20031 a right to acquire land arising on an intended sale or alienation by the owner did not create an interest in land unless and until it was exercised2. A right of pre-emption in relation to registered land created on or after 13 October 2003 has effect from the very outset as an interest in land capable of binding successors in title3.
It has been held that that where a right of pre-emption created prior to 13 October 20034 was not triggered by an event entirely dependent on the volition of the grantor (such as the
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This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge provisions•how negative pledges are viewed in the context of security and quasi-security, and•key considerations when drafting a negative pledge clauseWhere
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